Critical Illness Cover- Protection for the unexpected

Critical illness policies are the type of policy nobody wishes to have to claim against, yet evidence shows that these are vitally important policies that can support families and secure their financial wellbeing during the worst of times.

Critical illness cover is designed to pay out a fixed cash amount if you are diagnosed with a serious illness covered by the policy. Most policies cover around 35 illnesses with some providing cover for up to 150. Heart attack, stroke, cancer and multiple sclerosis make up the majority of claims. Most critical illness plans also provide a benefit should a policy holders child become seriously ill.

Critical illness cover helps to protect your future. The tax-free lump sum can be used however you decide; from covering additional medical costs, to paying off your mortgage or providing for your dependents.

Statistics show us that nearly 85% of the UK do not have critical illness cover, but claims statistics also show that you are five times more likely to suffer from cancer or a heart attack than you are to die before you reach 65.

Why do you need critical illness cover?

Only 15% of the UK has critical illness cover.

You are five times more likely to suffer from cancer or a heart attack than you are to die before you reach age 65.

Around 125 women diagnosed with breast cancer every day in the UK.

The most common cause of cancer for men aged between 20 and 39 is testicular.

It is interesting to see from the claims history that the although women live longer than men women on average claim on their critical illness policies at the age of 41, which is three years younger than men at 44.

Critical illness cover should be considered by almost everyone but is particularly important for anyone with major financial commitments such as a mortgage or dependents who rely on their income. It also pays to start young when premiums are relatively cheap, rather than leaving it until later in your life when the price of cover can rise substantially or you may not be able to obtain the level of cover you need.

How much you pay for critical illness cover will depend on a range of factors, including what sort of policy you require, your age, the amount you want the policy to pay out and whether or not you smoke. It is a fruitless exercise to choose critical illness cover on a cost factor basis only.

It is not as simple as life insurance and independent financial advice is required to choose the most suitable policy.

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